The Justice League mind-wiped Batman this one time, and it led to a lot of really bad stuff once he found out. Never good.
My sense from the episode is that Agatha is a good guy, and the sitcom thing has been made to confuse or befuddle whoever the real bad guy is, which I now think is Hayward. And that Hayward isn't what he appears to be. Question is - who or what exactly is he anyhow if that theory is true.
Further, after this episode it really does look like Dr. Strange will be the big reveal at the end. I mean, he has got to be aware of all these interdimensional, magical shenanigans by now.